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The Law of Increasing costs states production increases with higher costs. When all factors of production are at their maximum output, this is called a “maximum output.” If your increase in production goes from 50 to 100 units per day, the costs will rise….

Frictional unemployment or search unemployment as it is sometimes called refers to When workers are unemployed and searching for work in a stable healthy economy. It doesn’t matter whether they are fired or leave involuntarily. Others might be returning to work. It’s differentiated from other type of…

Market forces are the variables that affect the availability and price of goods and services in a marketplace economy With minimal government involvement. When supply decreases or demand rises, economic forces drive prices up and down. They also push them down when demand grows or reduces….

Real options theory, a modern theory that explains how to make strategic investment decisions when the future is uncertain, is called real options theory. Real options theory draws parallels to the valuation methods of financial options and the real economy. This theory is a…

A Speculative Investment is considered high risk, where the buyer is focused on price fluctuations. To profit from market liquidity price fluctuations, the investor purchases the tradable product (financial instrument). Someone who makes speculative investments is called a “speculative investor” or a Speculator. The…

For a successful marketing strategy, companies must agree on marketing principles. They are the foundation upon which we build product promotion strategies. The marketing principles can be used to promote products or services. The following may be used by some companies 4Ps Strategy (or 4P…